January, 2013:

It is cheering to see the level of activity under way in Hong Kong on environmental matters these days. Scarcely a day goes by without some new initiative or meeting.

The new administration must take credit for this, having declared itself open for business on environmental matters, in stark contrast to its predecessors. Yesterday was no exception, with the extension of the Fair Winds Charter, which sees operators of international ocean-going vessels voluntarily agreeing to switch to low-sulphur fuel when berthed in Hong Kong. The move came with a plea to the government to introduce legislation making fuel-switching and other emissions control measures mandatory, so as to level the playing field for all ship operators.

They asked for this when the Fair Winds Charter was first introduced two years ago but that came to nothing. But both the Secretary for the Environment, Wong Kam-sing, and the Undersecretary for the Environment, Christine Loh Kung-wai, were present at yesterday’s announcement and said they were committed to moving ahead with the legislation. There appears to be a much better relationship between the government and the Hong Kong Shipowners Association and the Hong Kong Liner Shipping Association, which, together with the Civic Exchange, were the bodies that have pushed this initiative.

A report by the Civic Exchange, the Hong Kong University of Science and Technology and HKU’s School of Public Health calculates that the sulphur content in shipping fuel emissions accounts for 385 avoidable deaths a year in Hong Kong. The present measures, if adopted by all shipping operators, would reduce the number of deaths by half, or 197 per year.

The ultimate target is to turn the Pearl River Delta into an emissions control area, where all shipping within 100 nautical miles of Hong Kong uses fuel with 0.1 per cent sulphur content. But that will require discussion with the mainland. The nagging thought that we have about this, is that if the government was told that bird flu was going to cause 400 deaths in Hong Kong over the next 12 months, then it would do more than say: “Don’t worry, we’ll fix it by the end of the year.” Emergency measures would be introduced. The new legislation is not due to be introduced until the fourth quarter of the year. It is hard to see this becoming law within a year given the normal pace of legislation.

Cruise ships could see change next year, but power facilities at Kai Tak will take longer

It will take several years for the government to introduce onshore electricity power facilities at the Kai Tak cruise terminal but a law requiring ocean-going vessels berthing at the city to use cleaner fuel can be in place next year at the earliest.

Undersecretary for the Environment Christine Loh Kung-wai made these remarks at a forum yesterday when challenged by green activists about emission levels after the Kai Tak cruise terminal opens in June.

According to the think tank Civic Exchange, vessels visiting Ocean Terminal emitted 252 tonnes of sulphur dioxide in 2007 – comparable to the 286 tonnes of vehicle emissions in Hong Kong in 2010.

Loh said the government planned to build onshore electricity facilities for cruises berthing at the Kai Tak terminal as soon as possible, but it could take several years.

She said the government first needed to draft a proposal, which then has to be passed by the Legislative Council’s environmental affairs panel and the Finance Committee. The next step would be to invite a tender. The whole process would take several years, she said.

Explaining why the government had not introduced the measure before now, Loh said: “There had been no international standard on how it should be done until around the middle of last year. Now that we know how to do it, it [the standard] will be very useful to us in the future.”

Loh also said that the government planned to introduce a law next year at the earliest requiring all ocean-going vessels – not just cruises – to use fuel with a cleaner sulphur content when in the city.

Hong Kong would be the first city in Asia to have this law if it were passed, although some European countries already had it, Loh said.

“We are determined … we need to protect Hongkongers’ health,” she said.

Other speakers at the forum, including Friends of the Earth’s senior environmental affairs officer Melonie Chau Yuet-cheung, agreed these two measures needed to be taken.

But they wanted more to be done as the Kai Tak cruise terminal will open in June, meaning there will be a “time gap” in between.

“Vehicles do not generate the most pollution. They are only the third on the list. Topping the list are the vessels,” Chau said.

Labour sector lawmaker Kwok Wai-keung, from the Federation of Trade Unions, said the situation was “worrying”, and suggested that the government charge a higher fee for vessels using more polluting fuel than those using cleaner fuel when they berth at the city.

Loh said that the government had introduced a programme in which vessels switching to low-sulphur fuel could get a 50 per cent reduction on port and navigation charges. She also said that there was already a voluntary scheme, the Fair Winds Charter, under which vessel operators agreed to switch to low-sulphur fuel to the maximum extent possible for two years from January 2011.

The public should not underestimate the effectiveness of these programmes, Loh said.

140. In 2011, marine vessels were the largest source of respirable suspended particulates, nitrogen oxides and sulphur dioxide. In particular, the emissions of ocean-going vessels at berth accounted for about 40% of their total emissions within Hong Kong waters. In September 2012, the Government launched an incentive scheme to encourage ocean-going vessels at berth to switch to low-sulphur diesel. We are also considering bringing in new legislation to enforce the requirement of fuel switch at berth. We plan to submit our proposal to this Council in the next legislative session following the completion of consultation with the maritime sector. Meanwhile, we are stepping up our efforts with the Guangdong Provincial Government in exploring the feasibility of requiring ocean-going vessels to switch to low-sulphur diesel while berthing in Pearl River Delta ports. Also, the first berth of the Kai Tak Cruise Terminal will be commissioned in the middle of this year. We plan to seek funding approval from this Council to install on-shore power supply facilities for use by cruise vessels with such facilities. This will enable cruise vessels to switch to electric power while berthing and hence minimise their impact on air quality. We are also promoting the use of cleaner fuels among local vessels. We have conducted relevant tests and consulted the relevant sector.

Many shipping companies are concerned about the cost of using low-sulfur fuel in Hong Kong

The cost of shifting to low-sulfur fuel is a factor in the low participation of Hong Kong‘s government initiative to promote fuel-switching at its port, South China Morning Post reports.

As part of efforts to reduce air pollution, since September 2012 the city-state’s government has offered rebates for ships that use low-sulfur fuel during their port calls there, but the payments are said not to be enough to compensate for using the more expensive fuel.

The report said only 13 percent of the ocean going vessels calling in Hong Kong have registered for the Environmental Protection Department (EPD) scheme.

“There is a significant financial commitment to switching fuel,” said Roberto Giannetta of the Hong Kong Liner Shipping Association.

A spokeswoman for Evergreen Marine said just one of its container ships was registered because of “cost saving considerations.”

Fair Winds Charter

More than 560 ships participate in the low-sulfur program launched in September, and about 18 shipping lines are part of the Fair Winds Charter, which requires them to use low-sulfur fuel “to the maximum extent possible” over a two-year period starting at the beginning of 2011.

Some shippers, including APL and Hanjin Shipping, have signed the Fair Winds Charter but have not yet registered any ships with the EPD incentive scheme.

“I know one prominent carrier who is switching fuel in Hong Kong, but does so quietly”

Roberto Giannetta, Hong Kong Liner Shipping Association

Giannetta said some carriers also have non-financial reasons for not taking part in the program.

“I know one prominent carrier who is switching fuel in Hong Kong, but does so quietly without joining the charter or the government scheme because if they do so here in Hong Kong, they would face tremendous pressure in their home country to do the same,” he said.

“Yet there are specific reasons why they don’t want to do that at home.”

Shipping lines that participate in the low-sulfur programs have called for the Hong Kong and Guangdong, China governments to make use of low-sulfur fuel mandatory.

Maersk Linerecently said it would stop using low-sulfur bunkers in Hong Kong unless the government regulates its use to stop shippers who don’t switch getting a cost advantage.

Many shipping companies are concerned about the cost of using low-sulfur fuel in Hong Kong The cost of shifting to low-sulfur fuel is a factor in the low participation of Hong Kong‘s government initiative to promote fuel-switching at its port, South China Morning Post reports. As part of efforts to reduce air pollution, since September 2012 the city-state’s government has offered rebates for ships that use low-sulfur fuel during their port calls there, but the payments are said not to be enough to compensate for using the more expensive fuel. The report said only 13 percent of the ocean going vessels calling in Hong Kong have registered for the Environmental Protection Department (EPD) scheme. “There is a significant financial commitment to switching fuel,” said Roberto Giannetta of the Hong Kong Liner Shipping Association. A spokeswoman for Evergreen Marine said just one of its container ships was registered because of “cost saving considerations.”

Fair Winds Charter More than 560 ships participate in the low-sulfur program launched in September, and about 18 shipping lines are part of the Fair Winds Charter, which requires them to use low-sulfur fuel “to the maximum extent possible” over a two-year period starting at the beginning of 2011.Some shippers, including APL and Hanjin Shipping, have signed the Fair Winds Charter but have not yet registered any ships with the EPD incentive scheme.“I know one prominent carrier who is switching fuel in Hong Kong, but does so quietly”Roberto Giannetta, Hong Kong Liner Shipping AssociationGiannetta said some carriers also have non-financial reasons for not taking part in the program. “I know one prominent carrier who is switching fuel in Hong Kong, but does so quietly without joining the charter or the government scheme because if they do so here in Hong Kong, they would face tremendous pressure in their home country to do the same,” he said. “Yet there are specific reasons why they don’t want to do that at home.” Shipping lines that participate in the low-sulfur programs have called for the Hong Kong and Guangdong, China governments to make use of low-sulfur fuel mandatory.Maersk Linerecently said it would stop using low-sulfur bunkers in Hong Kong unless the government regulates its use to stop shippers who don’t switch getting a cost advantage.

Annex VI Regulations for the Prevention of Air Pollution from Ships establishes certain sulphur oxide (SOx) Emission Control Areas with more stringent controls

SEE WHAT HK GOVERNMENT EPD HAD TO SAY

CTA says: if HK Government can mandate the import and use of Euro V diesel in Hong Kong it can also control what standard of bunker fuel is imported here ! All ships serving Baltic, North Sea and USA ports have twin tanks to comply with Emission Control Zone low sulphur fuel laws. Those ships also visit Hong Kong port and are carrying the low sulphur bunker fuel already.

Thank you for your messages of 23 and 26 June. The consolidated reply of EPD and the Marine Department (MD) is as follows.

1. What is the actual fuel sulphur cap here?
Ans. According to Regulation 29(1) of the Merchant Shipping (Prevention of Air Pollution) Regulation, the sulphur content of any fuel oil used on board ships in Hong Kong is not to exceed 4.5% m/m.

2. How is this enforced for incoming vessels which refueled elsewhere?
Ans. According to Regulations 33(4) and 34 of the Merchant Shipping (Prevention of Air Pollution) Regulation, all incoming ships of 400 gross tonnage or above and engaged in international voyage shall carry Bunker Delivery Notes (BDN) with the associated representative sample of the fuel on board. The BDN and the representative sample are subject to inspection by Government Surveyors.

3. What samples are taken to ensure the ships are conforming to “grey smoke emissions instead of black smoke”?
Ans. MD is currently using Ringelmann Chart for the identification of black smoke. If a ship emits smoke of or darker than Shade 2 for continuous 3 minutes, the emission is regarded as black smoke.

4. Since these Charter member shipping lines have opted to switch to ULSD only at berth and not whilst sailing within Hong Kong waters what has Government done to seek their compliance whilst underway rather than just at berth?
Ans. The Fair Winds Charter signatories have committed themselves to switching their vessels to 0.5% sulphur fuel when at berth. While sailing underway within HK waters, these vessels must meet the sulphur limit requirement stipulated under MARPOL Annex VI. As mentioned, since China has not designated its waters (including that of Hong Kong) as an Emission Control Area, there is no vehicle for Hong Kong to “require” operators to use fuels of more stringent specifications.

5. What is the sulphur content of bunker fuel supplied for refueling in Hong Kong?
Ans. It must be below 4.5% and is usually in the range of 3.5% – 4.0%. You may contact the local suppliers in the attached document for details or access the MD’s website on the link provided for that document.

6. Hong Kong is supposed to be an independent territory for 50 years from 1997 is it not? We make our own laws do we not ? The EPD intends to designate Low Emission Zones for traffic on Nathan Road, Causeway Bay and Central so that only Euro 5 diesels / hybrids will be allowed to enter those areas. I see no difference with doing the same for HK waters – either meet the relevant standards or do not enter our waters or be fined if you do.
Using “China did not do it” is a lame duck reply more worthy of Donald Tsang than a body supposed to be looking after the air quality here , in this 50 year independent SAR.
Ans. Under MARPOL Annex VI, there are general requirements on the sulphur content of any fuel oil used on board ships. There is also a mechanism for member states of the International Maritime Organization (IMO) to apply for designating its waters as an Emission Control Area (ECA), within which the requirements are more stringent than the general requirements. This mechanism is not mandated for all member States to designate its waters, in whole or in part, as an ECA. As a matter of fact, Hong Kong is an associate member of IMO, not a full member (member state) and thus cannot file an application for ECA designation by Hong Kong itself.

Quoting soon-to-be released government data, Secretary for the Environment Wong Kam-sing said ships, already the biggest emitter of nitrogen oxides and suspended particles, became the most significant sources of sulfur dioxide as well.

Hong Kong has cracked down on power plants since 2010, adding pollutant-removing scrubbers, but marine pollution has increased.

Chief Executive Leung Chun-ying is expected to announce new plans next week to reduce emissions from ocean-going vessels, local ferries, and other ships.

“Voluntary schemes might not be the best – we might need something stronger”

Wong Kam-sing, secretary for the environment, Hong Kong

Wong refused to say whether Leung would introduce mandatory requirements concerning marine pollution, but he said existing rules that offer compensation to ships switching to low-sulfur fuels are not enough.

“Voluntary schemes might not be the best – we might need something stronger,” he said.

Maersk Line, the world’s largest container-shipping company, has threatened to stop using cleaner fuel at the Port of Hong Kong if the government doesn’t mandate higher quality oil for carriers in the city.

Without rules, shipping lines that burn polluting fuel benefit from cheaper costs compared with Maersk, which uses a cleaner fuel that is also more expensive, Bloomberg reported, citing Tim Smith, head of the company’s North Asia division.